BUS 528 - Chapter 12 Ideas

Chapter 12 Measuring Progress – Ideas

1. Use the 0-50-100 Rule to record completion of tasks
a. 0 percent complete: The task has not begun
b. 50 percent complete: The task has been started but not finished
c. 100 percent complete: The task is complete

2. Measuring cost performance
Measuring cost accurately is critical as a project progresses because cost measures productivity. Every work package has cost estimates for labor, equipment, and materials. As each one is executed, be sure to capture the actual costs comparing planned and actual costs will tell you whether the project is progressing as planned.

3. Earned value reporting
Comparing planned cash flow with actual cash flow has its uses, but it doesn’t tell you whether the project will be over or under budget. To get the true picture of cost performance, the planned and actual costs for all completed tasks need to be compared. This is accomplished with a technique called earned value reporting. Earned value reporting uses cost data to give more accurate cost and schedule reports. It does this by combining cost and schedule status to provide a complete picture of the project.

4. The work breakdown structure is critical
The secret to making earned value work is in the work breakdown structure (WBS). Each task on the WBS must be a discrete task that meets these criteria:
a. It must has defined start and finish dates
b. The task must produce a tangible outcome whose completion can be objectively assessed
c. Costs must be assigned to the task, even if they are only labor costs.